Chemical Industry
Covering more than 80,000 commercial products, India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers. India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP. The Indian chemical industry is currently valued at US$ 220 billion and is expected to reach US$ 300 billion by 2030 and US$ 1 trillion by 2040. This industry remains an active hub of opportunities, even in an environment of global uncertainty.
Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan and China. India accounts for 16-18% of the world's production of dyestuffs and dye intermediates. From April-May 2024, the export of agrochemicals was US$ 661.18 million, dyes were US$ 379.61 million and the other dye intermediates were US$ 27.87 million. Indian colourants industry has emerged as a key player with a global market share of ~15%.
Supply Chain Challenges
Transportation Intensity
The distribution of chemicals is transport-intensive due to the lengthening of supply lines.
Complex Logistics
The involvement of multiple stakeholders (shipping lines, transport agencies, environmental agencies, etc.) increases the complexity of logistics..
Regulatory Compliance
Ensuring compliance with safety and environmental regulations is crucial.
Where Can We Support The Industry
Enhancing Safety Protocols
Developing and implementing safety protocols for handling, storage, and transportation of hazardous chemicals to prevent accidents and contamination.
Optimizing Distribution Networks
Implementing advanced logistics management software to streamline distribution, improve shipment tracking, and reduce lead times.
Demand Forecasting
Using predictive analytics to anticipate demand changes, adjust inventory levels, and prevent stockouts or overstocks.
Regulatory Compliance
Ensuring adherence to stringent regulations, such as the Globally Harmonized System (GHS), to avoid fines and disruptions.
Real-Time Monitoring
Implementing systems for real-time tracking of assets to ensure safety, quality control, and cost management.
Sustainability Initiatives
Promoting sustainable practices to reduce emissions and optimize resource use.
Cost Management
Identifying cost-saving opportunities in transportation, warehousing, and inventory management while maintaining high service levels.
By addressing these areas, supply chain consultants help chemical companies achieve greater efficiency, safety, and compliance, ultimately enhancing overall performance and competitiveness.
